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Why Cost Per Install Marketing is the Most Effective

Andrew Pearce

Why Cost Per Install Marketing is the Most Effective

Cost Per Install Marketing (CPI)is best defined as a metric that is able to reveal how much money is able to be spent when acquiring any type of new user on a platform such as social media apps or any other platform on a mobile device. When a marketer looks at one CPI campaign in particular, there will only be expenses taken out of the marketing budget for that specific campaign.

When a marketer applies CPI to their marketing strategies, these are the main steps that will most likely occur for guaranteed success.

· App owners may choose an advertising network or publisher to partner with for the campaign.  

· Advertisements for apps will appear in other apps or mobile websites.

· Users who decide to click on that advertisement will automatically be taken to the app’s download page, creating a call-to-action.

· After the user downloads the app after clicking on the advertisement, the app owner will pay the advertising network or publisher for that particular installation.

Cost Per Install Marketing Benefits

In any type marketing campaign or method, there are independent benefits that may easily be seen and measured after activation. In fact, this type of strategy is one of the most accurate ways to measure the overall success and see what users have been interested in and acting on within the advertisements.

The following are the benefits that are able to demonstrate a high level of effectiveness when implemented in a marketing strategy.  

CPI Marketing Targets app’s niche audience - An ad will be shown to potential users interested in what the messaging and content of that ad has to offer. With niche marketing,there is greater potential for the right consumer to be reached and take the action that will lead to the ultimate download of the app.  

Receive Return on Investment - The majority of all advertising will not receive a direct return on investment for every expense they have. This happens to actually occur more often than not.

However, this is one of the only platforms where businesses are able to get exactly what they pay for. Plus,more installations are able to increase rankings on other platforms such as Google Play or even the Apple App Store, which is an extra, indirect benefit.

Quickly Grow a Platform - This is one of the best methods to increase popularity of a mobile app, especially if it happens to be a new release to the public. Marketers are able to receive instant consumers. Even if someone is able to see the ad and they don’t take next steps, this will still create quality brand awareness for the target market.

Directly Work with the Consumer - Take out the “middleman” and work with consumers directly. This will create better insight into their behaviors on both the internet and social media platforms. By working with the consumer directly, this will also give marketers more of an opportunity to measure their overall behavior and reactions to a particular advertisement.

Collect Demographic Data - Marketers will be able to collect behavioral and demographic data that may be applied to future marketing campaigns and strategies. If this particular campaign was unable to reach the desired target market, then the data collected may also be used to redirect where to find a responsive consumer.

Who Would Benefit Most?

Game Developers - Game developers are able to strategically target users with the most relevant campaigns. This may be achieved because CPI data has the ability to represent both regional and demographic averages. Those will then determine the types of market segments that are cost-efficient and valuable for game developers who have a mobile presence.

App Marketers - App marketers will be able to optimize conversions for the market segments that engage with the ads created to install apps. They are able to do this because CPI campaigns are able to give a definite cost of customer acquisition that marketers may use to measure the growth of the app. Marketers are able to grasp demographic insights and behavioral data that led them to ultimately deciding to download the app.

Direct-to-Consumer (DTC) Marketers - This type of marketing campaign works with consumers directly.Brands that choose to employ this method are able to measure the cost of acquiring new targeted consumers. This data may also be cross-referenced with other shopping data that same consumer takes part in on a regular basis.    

What CPI Network Should I Choose?

As a marketer, you may have already established that CPI is a good choice for your brand or campaign, but you may not understand what to look for when choosing a network to host and implement this type of strategy. There are a lot of areas marketers need to consider when choosing a CPI campaign provider.

That’s why it’s important to look at these following four key points to better pinpoint what network to select.

Rates - Every marketer wants to pay the right price for advertising, which is one that will properly aid in a more positive return on investment. Most of these platforms and networks will have specialized technology that will assist marketers in tracking averages and bidding at levels that are set by the marketer.

There may also be a commission on top of that for the platform, ad network, or process. This may be avoided, but marketers may opt to pay in order for them to be able properly set up a workable budget.   

Metrics - The platform a marketer chooses should be able to track the different metrics and payouts. Marketers need to decide what metrics to use based upon the value the action of the consumer provides.

Is it when they’ve made their first purchase on the app? Is it when the money they spend hits a certain amount? If it’s a game, is it when the consumer reaches a certain level? All of these questions need to be answered in order to effectively determine the metrics.

Niche - This needs to be determined in order to better understand the niche of the actual advertising and the target of the network it is able to specialize in. So, the question needs to be asked who the target market is and who is able to be reached on each possible network. Does the campaign specialize in mobile apps or games? What are the specific goals that need to be met?

Ad Networks/Apps - What is the type of network the marketer needs to achieve for the campaign to be seen as successful? The first network may be wider in order to receive a bigger pull in consumers, but there may be a second network that is needed to better achieve a niche market that was discussed above.

Other Types of Paid Campaigns

While CPI is one of the more effective ways to market to your target audience, there are other ways to grab the attention of new consumers. The following are other similar paid marketing methods that marketers have used in the past in an attempt to achieve that same return on investment.

· Cost Per Mile (CPM): An app owner will pay for every 1,000 users who view the advertisement.

· Cost Per Click (CPC): An app owner will pay each time an advertisement is clicked.

· Cost Per Action (CPA): An app owner will pay each time a user takes a specific action.

Cost to Market

One of the more successful CPI marketing strategies entails the use of mobile apps. It’s important to find the right network that will offer the lowest rates without jeopardizing the quality of the campaign or the goal that’s trying to be achieved.

According to Business of Apps,the following is a key representation of the cost per install on iOS, Android,and social media platforms. The below data is subject to change with each new year. However, this creates a better understanding, foundation, and layout for what to expect when implementing the campaign and cost procedures.

· iOS app CPI Globally - $0.86

· Android app CPI Globally - $0.44

· iOS app CPI in U.S. - $2.07

· Android app CPI in U.S. - $1.72

· Facebook ads CPI - $1.80

· Twitter ads CPI - $2.53

· Instagram ads CPI - $2.23

· Search ads CPI - $1.00

How to Calculate

In order to calculate CPI, the marketer would need to take the campaign money allocated for this type of marketing and divide it by the number of new installs that are directly related to the marketing campaign. This will provide an illustration to see not only where the money will be going, but it will also show how each part of the campaign will be directly impacted.

For instance, if the Instagram platform is slightly cheaper to utilize for the current company represented,then this type of calculation will allow marketers to predict the cost in order to receive the proper reach.

CPI is also the type of marketing method where a payment is only made if that particular app is installed on a user’s device after they clicked on any ad campaign. Then the publishers are charged for the CPI marketing, which is only for the number of downloads for that specific app. This occurs in order for app stores to gain their own sense of visibility.

As one can clearly see, cost per install (CPI) marketing is a highly effective marketing strategy when utilized efficiently and with targeted purpose.

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CPI Formula -

Install Button -

CPI App Examples -

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